Egypt’s New Fintech Law and Regulations

Egypt’s first Fintech Law No. 5 of Year 2022 regulating and developing the use of financial technology in non-banking financial activities (the “Law”) aims to enhance financial inclusion and expand the base of beneficiaries from the non-banking financial activities and reduce the costs to benefit from these services and activities.

The Financial Regulatory Authority (“FRA”) is the sole authority responsible for the execution of this law as it is entitled to:
  1. Take the procedure of incorporating Fintech companies subject to this law.
  2. Grant the necessary license and approvals.
  3. Use technological applications to ensure compliance with the laws.
  4. Use technological applications to collect digital data to investigate it.
  5. Establish control over Fintech application whether by itself or through a third party.
  6. Establish data and hardware security controls.
  7. Supervise and control over Fintech companies.
  8. Receive complaints from those who deal with Fintech companies.
  9. Prepare and publicize the necessary studies and statistics to enhance Fintech activities.
  10. Spread awareness on Fintech activities.
Non-banking financial activities that are subject to the supervision and control of the FRA include:
  • Insurance
  • Real-estate financing
  • SMEs financing
  • Finance leasing
  • Factoring
  • Consumer finance
  • Microfinance
Fintech companies must reconcile their status in accordance with the provisions of this law within 6 months from the date of the issuance of its executive regulations. This duration may be extended to not exceed two years by the board of the FRA. It is permissible by a decision of the Prime Minister based on the proposal of FRA, to extend the period for another two years.

In order to receive the license to practice Fintech activities, the following criteria must be fulfilled:
  1. The company’s operations are limited to practicing the licensed activities.
  2. Specifically determining the structure of direct and indirect ownership and the related parties.
  3. The company shall have the equipment, technological infrastructure, information systems, security, and insurance necessary to carry out the activity in accordance with the requirements issued by the board of the FRA.
Companies may use the following digital applications to achieve the license or FRA approval:
  1. Electronic application for financial consultant
  2. Electronic application for microfinance
  3. Electronic application for insurance
  4. Electronic application consumer finance
  • Imprisonment no less than 6 months and a fine not less than EGP 200,000 and not exceeding EGP 1,000,000 or either of these sanctions, for practicing, establishing, or operating any of the activities stated in this law without obtaining the necessary approvals and license.
  • A fine not less than EGP 50,000 and not exceeding EGP 500,000 for violating article 7 of this law which entails the rules and regulations by the FRA for Fintech companies.
  • Imprisonment no less than 1 month and a fine not less than EGP 20,000 and not exceeding EGP 100,000 or either of these sanctions, for preventing any of the FRA employees from performing their duties and/or intentionally hiding required data or documents.
  • Imprisonment no less than 3 months and a fine not less than EGP 200,000 and not exceeding EGP 1,000,000 or either of these sanctions, for violating article 13 of this law which entails maintaining complete confidentiality.

Eldib & Co helps international and local companies comply with Egyptian laws and regulations. Contact us at to find out how we can you establish your own fintech company.  
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